Order Date – 01 March 2023

Parties: M/s Leading Point Powertronics Pvt Ltd Vs Commissioner, Central Excise & CGSTDelhi South

Facts –

• The Appellant, M/s Leading Point Powertronics Pvt Ltd had invested Rs. 1,00,00,000/- on 27.10.2010 during the course of investigation.
• A show cause notice was issued on 13.04.2011 to the appellant demanding the duty of Rs.63,66,128/- along with interest and equal of penalty.  Demand was dropped and direct to appropriate redemption fine and penalty from the amount deposited during the investigation and rest of the amount was ordered for refund to the appellant.
• On 17.06.2020the appellant had made a request for refund which was allowed and the interest has been allowed on the same from the date of filing of the refund claim which was filed on 17.06.2020 and not from the date of deposit of the amount.

Issue –

• Whether the appellant is entitled to interest from the date of deposit of amount or from the date of filling of refund?

Order –

• The Tribunal held that the issue herein is squarely covered on all four by the precedent ruling of Division Bench of this Tribunal in Parle Agro Ltd.which has also been confirmed by Punjab & Haryana High Court in Riba Textile Ltd. in CEA No. 8/2022 order dated 14.03.2022.
• Hence the Tribunal allowed and hold that the appellant is entitled to interest on the refundable amount of Rs. 22,84,270/- from the date of deposit (27.10.2010) till the date of refund being 05.02.2021, @ 12% per annum.